In the light of huge global changes…as small to medium businesses Founders and Owners… we must now act to transform our Purpose, role, vision, and mission. Included in this transformation, is us becoming agents of whole system change.
This is the fifth article in an evolving series about a new role, vision, mission for all small to medium business owners. For the first article in the series, see Living Document – which is regularly updated with new initiatives
Key to our survival and thrival
Given the strength of the some 40 social, technological, ecological, economic and political [STEEP] ‘tsunamis’ hitting us globally… there is a new key to the survival and thrival of us all:
Businesses with soul
Answering that question shakes the very foundations of modern business capitalism, Yes! It takes us into Regenerative Economics. And it also points us to a transformed way forward – us manifesting as “Businesses with Soul”. Who are also agents of ‘whole system’ change.
Mission Impossible
You have seen, or at least heard of, Tom Cruise, and the Mission Impossible TV and film series – where Cruise does all his own daredevil stunts.
And we all now know this… The entire globe is now reaching ‘impossible’ whole system existential crises of tsunamis, tipping points, challenges and transformations.
Global warming is just one of many
Global warming is just one of these many ‘impossibles’. But it’s one that demands the end of denial, equivocation, and leaving it to others. And it requires significant changes in the mindsets and behaviours of every, citizen, every SME business owner, every corporation, every politician, every nation, every world body.
And, yes, that includes you and me. All of us. And NOW!
We’ve done it! We’re responsible!
In the past, as a whole, Business, and sure, that is not necessarily us… But Business generically – in the name of maximising shareholder value… Has often ‘raped’ our planet in multiple ways… And along the way ‘we’ve’ internalised the profits and externalising the costs onto our environment, society, and governments.
These activities have led to enormous uplifts in our standards of living. And yielded us artificially high dividends and market valuations. But at high cost. How high is now becoming threateningly apparent.
Even if that is not us – and has never been us – there’s no point in denying that as a group, that’s what ‘Business’ enterprises have done, collectively. And in many, cases, are still doing. For good. And for bad.
Want evidence?: Check out what the Board of James Hardie concealed for so long about the dangers of asbestos. And what is now being heard about Exxon Mobil’s concealing what it knew about its impact on climate change.
And imagine this!
Imagine the Chairman of a publicly-listed manufacturing company reporting to shareholders at the Annual General Meeting:
“I am delighted to report this year, our new product range has had extraordinary success. And our revenues have topped $200 million with a record pre-tax profit of $40 million. Your Directors have been able to reduce the punitive Government taxes we pay to just $1 million. So as shareholders you will receive a record $1 a share dividend….
“And the market now values us at a record $400 million!…
“Questions from the floor… Yes sir… The cost of our impact on the environment? Mmmm well let me see. We have spewed out $20 million of non-reusable packaging. We have yet to control the air and water pollution from our two main factories, as the cost of fixing that is a horrendous $30 million which would mean no dividend… I can’t think of anything else…
“Yes Mam, over there… Why are our taxes so low? At the moment the corporate tax rate on profits is 30%. Which means we would normally pay $12 million in tax – which after retaining some profits for ongoing growth, would leave us with a divided of only around 20 cents a share.
“So, your Directors have used a clever device known as ‘transfer pricing’ to shift what would be taxable profits to our offshore financial centre subsidiary in Singapore. It’s from that company in Singapore that your Directors pay your dividend. All totally legal, I assure us all. ”
Smart behaviour? Yes. Legal behaviour? Yes. Soul-full behaviour? No.
Think this story is a fantasy? Think again
In 2016-17, 722 of Australia’s largest corporations paid no corporate tax. These include 100 firms that reported more than $1bn in total income.
Ask the Directors, “How come?” And they will all have legitimate reasons – including balancing a huge loss from the previous year.
However, some Directors will painstakingly explain how paying the full amount of tax will reduce profits, and hence dividends by 30%. That will bring the share price down. And that is definitely not good deal for the business or for the company’s shareholders – who after all are the ones the Directors are accountable to…
What if…?
But what if Directors were legally required to evidence how they added real value to society as well? How both they “Do good, and do no harm?” And what if all government subsidies were removed from fossil fuels? And if companies were charged annually the “$20 million” for their non-recyclable packing? And each year “$30 million” for not fixing their air pollution, until they fixed it?
Alter the face of capitalism
Would that not both alter the face of capitalism? And quickly change behaviour? Yes it would, and at extreme cost and pain to shareholders and share price – which have been artificially high for years.
Better, surely, we act voluntarily and ethically than have governments force these changes. Which around the world they are now starting to.
Harsh reality
The harsh reality is for the next generations to survive and thrive on this planet, existing generations must now go through some really tough times of adjustment. To make that possible, most of us must opt for a simpler life, and a drop in our living standards… unless…
Hopeful reality
Unless, unless, unless, we as SME founders and owners band together NOW in tribes to create and make different, better, brighter, futures happen. For. collectively, we are the best innovators and best agents of social, economic and whole-system change that exist anywhere. And we have the numbers!
Using the employment measure of small business, in 2016, there were 2,065,523 small businesses in Australia employing less than 19 people, accounting for 97 per cent of all Australian businesses by employee size. There were 51,000 medium sized businesses, employing 20 to 199 employees, which is 2.4 per cent of all firms. So SMEs are 99.4% of all Australian businesses!
Thorny questions, difficult answers
Despite the virulent protests from many right wing billionaires, and status quo apologists, we are slowly evolving to the notion of corporations and private companies being evaluated and judged not just for the ‘good’ they provide to shareholders and stakeholders. But for both the harm they do, and the value they add to society as a whole and to all – including our planet! See: Redefining capitalism: bosses eye purpose beyond profit.
Why has business, generically, got away with aberrant behaviour for so long?
Many reasons. Our ignorance and lack of research. The Darwinian idea of the survival of the fittest. The narrowing evolution of capitalism. The extend to which rapid economic developments has delivered so many beneficial goods – while concealing the bads. The huge rise in corporations which exceed the ‘GDP’ of nations states. Business lobbying that changes legislation – for example, deregulation of the US banks so hedge funds could trade derivatives lead directly to the Global Financial Crisis of 2008 – with enormous pain everywhere.
Soul-less Businesses
But we can dramatically oversimplify all this by saying that the root cause, is as a capitalist society and as a business cohort, we have separated off our roles, values and instincts as individuals, lovers, parents and citizens, from our roles, values and instincts as a business ‘collective’.
Two thousand years ago a Great Teacher asked a penetrating question: “What does it profit Humankind if we gain the whole world, and lose our soul?”
And we have done exactly this. We have venerated money, physical assets, economic growth as The Good – to our enormous, enormous benefit. But at the same time to the disbenefit of our planet, our communities and overall wellbeing, and to our ‘soul’.
We have made the equation, “Money or soul”. Soul left at home. Money the god we worship in business and at work. Generically, in business, we have acted “soul-less-ly”.
Clearly that must now STOP, STOP, STOP. Now we must rebalance the scales. It must be money and soul: Businesses with Soul.
New bottom lines – as many as seven
And, yes, yes, yes, genuine care for the planet, and paying attention to the 17 Developmental Goals of the UN, when translated into multiple actions, means many, many ‘so what’s’ are in the pipeline for us as individuals and businesses.
One transformation is we WILL move from the simple, predatory, one bottom line of the Great Unilateral God of Profit, for the good of shareholders, and stakeholders, only. And instead we will focus on`, and measure, as many as seven bottom lines, for the good of all:
This message will NOT self-destruct in ten seconds. From here we go in the details of a 20-step road map to assist us perform our Mission Quite Possible:
Please feel free to post any or all of the articles in the whole series of 40.
To think about now:
Want to know more? Want to dialogue? Want to be part of the new role and mission?
Contact Neville Christie on +61 420 978 932 or neville@nevillechristie.com
Next in the series: Overview of your SME’s new business flight plan.
#rapeofplanet #businesswithsoul #RegenerativeEconomics #newbusinessrole
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This is the second article in a series about a new role, vision, mission for all small to medium business owners. For the first article
